If you’re feeling overwhelmed and uncertain about what to do with your money, and if you’re finding it challenging to make decisions that align with your values and financial goals, then you are not alone! It’s not just about numbers and math – it’s about understanding your values, your past experiences with money, and cultivating a supportive community.
In this episode of Highly Sensitive Money, host Diana Yañez delves into the concept of holistic financial well-being, drawing from her personal experiences and insights. She introduces a teaching graphic called “Your Money in Full Bloom” that encapsulates the various elements of money management, emphasizing the significance of understanding one’s values, reflecting on personal money history, and engaging in open money conversations.
Yañez also shares seven essential steps for creating a stable money foundation, encouraging listeners to build financial security and peace of mind. Her relatable anecdotes and practical advice make the information accessible and relatable, providing valuable insights for navigating the complex world of personal finance. By emphasizing the psychological and emotional aspects of money management, she offers a refreshing perspective that resonates with individuals seeking to enhance their financial well-being.
If you’re looking to develop a deeper understanding of your relationship with money and cultivate a more holistic approach to financial management, this episode is a must-listen for individuals seeking a positive and impactful shift in their financial journey.
In this episode, you will be able to:
- Explore holistic financial well-being by integrating your financial and personal goals.
- Understand money management strategies to take control of your financial future.
- Consider how personal values impact your financial decisions.
- See a pathway to a stable money foundation for long-term financial security.
Cultivating Community and Voicing Your Best Life
A community of like-minded people can provide the support and motivation needed to achieve financial success. Having a circle of individuals who share and respect your values can help combat feelings of isolation as you navigate the complexities of managing money. Also, having a clear vision of your ideal life can guide your financial decisions and keep you on track to achieving your goals.
In the podcast, Diana Yañez talked about the crucial role a supportive community plays in making changes to one’s financial habits. She emphasizes the idea of voicing your best life, which means having a clear vision of what you want and believing in your capacity to achieve it. Diana’s thoughts on community and envisioning express the unique blend of shared support and personal ambition that is key to financial success.
Future Planning and Risk Management
Planning for the future and managing potential risks are key to a solid financial plan. Paying off debt, securing life insurance, contributing to retirement plans are all parts of long-term strategic financial planning. Moreover, risk management – preparing for unforeseen events – helps navigate through life’s uncertainties. This could include setting up an emergency fund, getting insured, and estate planning.
During the podcast, Diana Yañez brings up interesting revelations about the importance of routine money check-ups to stay aligned with short-term, midterm, and long-term targets. Further, Diana elegantly drives home the importance of managing risks through insurance and estate planning. Risk management, as Diana points out, essentially serves as a safety net, highlighting the importance of staying prepared and choosing the right support team.
Nourished Soil: Rooted in Your Values
A life lived in harmony with your core values is likely to be more satisfying and meaningful. When it comes to finances, aligning your money decisions with your values can provide a sense of contentment and peace that surpasses material wealth. By uncovering your values, you get to discover what truly matters to you and can make financial choices that reflect these values. This could be anything from setting aside a part of your income for charitable causes to investing in sustainable businesses.
Diana Yañez used a compelling metaphor of a tree drawing sustenance from nourished soil to explain this concept in the podcast. She believes that rooting our financial decisions in our values makes our financial health thrive, just like a tree flourishing in rich soil. Moreover, by encouraging open money conversations, she indicates the significant role of clarity in understanding our underlying motivations to improve our money management skills.
The resources mentioned in this episode are:
- La Bougette et La Lune – The Budget and The Moon: Enroll in the self-guided course to create a spending plan and gain financial freedom.
- Aging Decision Tree article to navigate end of life planning.
Timestamped summary of this episode:
00:00:00 – Understanding Your Money Psychology
Diana introduces the concept of money as a psychology problem rather than a math problem. She emphasizes the importance of understanding one’s values, money history, and having open money conversations.
00:02:22 – Nourished Soil: Rooted in Your Values
Diana delves into the concept of “nourished soil” which includes being rooted in your values, understanding your money history, and having open money conversations. She emphasizes the significance of these aspects in making informed money decisions.
00:04:38 – Future Planning and Risk Management
Diana discusses the importance of future planning, including short term, midterm, and long term goals, as well as risk management. She provides insights into defining timelines for goals and the necessity of having risk management in place.
00:08:28 – Cultivating Community and Voicing Your Best Life
Diana emphasizes the importance of cultivating a community with shared values when making changes in one’s financial life. She also encourages voicing one’s best life and the capacity to achieve it, highlighting the significance of self-efficacy and support in reaching financial goals.
00:13:45 – Building an Emergency Fund
Diana emphasizes the importance of having a $1,000 emergency fund and the skill set required to save that amount. She also highlights the psychological aspect of holding money and the impact of childhood experiences on money management.
00:14:37 – Importance of Life Insurance
Diana discusses the significance of having minimum life insurance for dependents, especially for those with children under 18 or 26. She emphasizes the need to consider debts and how life insurance can provide a sense of security in worst-case scenarios.
00:15:32 – Understanding Your Values
Diana explains the importance of understanding personal values and how they impact financial decisions. She provides examples of how values can change over time and shares a values exercise to help listeners identify and live into their values.
00:16:38 – Creating a Spending Plan
Diana delves into the concept of creating a spending plan, reframing the word “budget” and highlighting its role in reflecting personal values. She compares it to a food plan and explains how it can create freedom and structure in managing finances.
00:18:22 – Debt Management and Future Planning
Diana discusses the importance of retirement plans, debt management, and voicing aspirations for the future. She emphasizes the possibility of bankruptcy as part of a debt management plan and the significance of aligning financial decisions with long-term goals.